EXCHANGE RATE OF #BRENT ON FOREX

Price rate of BRENT characterizes on a chart the Brent oil price in the U.S. dollars presented on the Forex market. Brent is the north sea oil, and you mustn't confuse this type of oil with the American WTI oil (West Texas Intermediate). The price of Brent oil is considered as an indicator on the data of which professionals from all over the world make their forecasts. The cost of this resource has the direct influence on the exchange rate of the U.S. dollar to the Russian ruble. Now there are only lazy people don’t know that when the barrel price declines, the dollar price decreases.

The Brent oil is the most important global economic wealth, alongside with gold and the U.S. dollar. Such type of oil is for a reason considered as a quality standard: in terms of oil properties, quality and composition, it is optimal from the point of view of the petrochemical industry, which processes the petroleum products.

The huge part of financial specialists are constantly watching the charts and analyzing the trading and future contracts of this oil supply, because with such information it’s easy to predict the market events and trends of the global economy.

On a chart that you can see on the freshforex.org the ratio of the Brent oil prices is given to you to be able to make a forecast about the future dynamics of this financial asset. With this chart, it's also deeply convenient to track both the current and the historical price of the asset and to determine the dynamics of Brent prices relative to the U.S. dollar.

The oil volatility causes the high profit that can be received from trading this asset, however, such trading has many risks too. Because of it, the oil trading, and especially the oil to the dollar trading, is recommended to only experienced traders who have a large capital in their hands.

Value of Brent oil price in the U.S. dollars for commodity economies

If you look at the Brent oil price in the U.S. dollars, you'll promptly determine the tendencies among the raw materials market investors. Furthermore, the oil price is a factor determines the price rates of almost all currencies in the world — especially the currencies of those states who export the raw materials, and not the finished products. But, of course, it’s not always like this — there were the situations when the U.S. dollar was increasing and the oil rate was increasing at the same time. An even the Russian ruble was fixed in March 2015, although the Brent oil prices were falling down swiftly.

By watching the oil prices on the online chart you may easily understand the current situation happening on the market and make a forecast for the further events.

The prediction base is an assumption about the mechanism for maintaining the oil price (in rubles) at a certain level. The level has to be enough for getting the oil and gas budget incomes to the amount which would provide (at least) a deficit-free realization of budget expenditures. And has to be approximately corresponded to the present ideas about its movement in the corridor, which the limits' establishment occurs according to the inflation rates and volumes of the budgetary commitments made.

The calculation base is the Urals oil price, whose sales fill the Russian budget. The price of this particular oil is predicted at a discount relative to the Brent oil price.

The current budget rule allows creating the cut-off price in the amount of 40 USD per barrel with the further indexation to the U.S. dollar inflation indicator. All the budget profits that can be received in the situation when the price of oil exceeds the $ 40 per barrel will be directed to reserve funds. Thereby, the profits received from the oil and gas industry is "sterilized", which will make it possible to reduce the impact of oil prices on the exchange rate of the national currency.

The size of the budget amount, planned during the budget discussions, is determined not only by the target indicator of the ruble price in the oil barrels, but also by the estimated volumes of production and sale of oil and the oil products. But with the reduced profitability conditions, increasing the tax burden and the implemented sanctions, as well as OPEC + deals, the average volume of hydrocarbon production in general remains unchanged (at the level of 2017). If adjust a statistical permissible error, then its effect to the current model should be leveled.